(CMA adapted, Dec 86 #20) On January 1, Year 1, Nicole Company sold its 5-year, $100,000 face value, 8% bonds at $108,530, to yield an effective annual interest rate of 6%. The bonds are dated January 1, Year 1, and interest is payable annually on January 1 . Using the effective interest method of premium amortization, the amount of interest expense (rounded to the nearest dollar) reported by
Nicole Company in Year 1 is
a. $1,488
b. $6,512
c. $8,000
d. $8,682
e. $9,681
B
Business
You might also like to view...
The use of wearable devices and personal health trackers and applications has __________ in recent years.
What will be an ideal response?
Business
Michelin Tire Company produces a variety of tires at factories in South Carolina. Name three B2B markets in which Michelin might sell its tires.
What will be an ideal response?
Business
Purchasers of consumer goods through the mail are responsible for paying use tax on goods for which sales tax was not collected by the seller.
Answer the following statement true (T) or false (F)
Business
A(n) ___ ______ trust enables the trustor to change the trust at any time
Fill in the blank(s) with the appropriate word(s).
Business